TSP and IRAs

Q. I will turn 70½ next year and understand I need to take withdrawals from my retirement accounts. Can I add all of my accounts together — IRA and Thrift Savings Plan — compute the required minimum distribution, and then withdraw from one account which is not doing as well as the others, as I can if I have only IRAs? I want to withdraw my entire minimum from one IRA. Or must I take a minimum withdrawal from my TSP separately from my IRAs?

A. You must compute the required minimum distribution for each account separately, but you may take your RMD from any account or accounts you wish. You should leave your TSP account untapped for as long as possible, unless there is good reason to do otherwise. I don’t see what historical performance has to do with the choice of account for withdrawals.

About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

Search Money Matters

SUBMIT A QUESTION

First, please review previous Q&As to see if your question already has been answered. If you cannot find the answer, submit your question to our Money expert at fedexperts@federaltimes.com

PLEASE NOTE! Do not submit ANY questions via the Comments form. Questions submitted via the Comments form will NOT be answered!

IF YOUR QUESTION IS NOT ANSWERED

Federal Times’ experts answer as many readers’ questions as possible but, due to the volume of e-mail, they cannot answer every question submitted. You’ll have the best chance of getting an answer to your question if you follow these steps:

• Ask questions that have not previously been answered. Before submitting a question, review the Q&As already on the site by using "search" above.

• Ask questions that fall within each expert’s scope of expertise. Reg Jones, for example will answer questions about federal civilian benefits; he will not answer questions about military benefits.

• Provide sufficient information about yourself — for instance, a question about retirement should say which retirement system you are in.

• Do not expect personal legal, financial or career advice. Answers that require a legal opinion, particularly those involving divorce and court orders, cannot be provided.